Shares fell more than 2% as net income fell 4% year-over-year

The beverage provider unveiled earnings for its fiscal third quarter that came in at 47 cents per share on an adjusted basis, a 1% rise compared to the year-ago period. However, the figure was under the 48 cents per share on an adjusted basis that analysts were expecting.

Meanwhile, revenue came in at $808 million, which was almost flat compared to the third quarter of the previous fiscal year. Net sales excluding negative currency impact and other adjustments grew 4%, while company sales before accounting for excise taxes were $1.06 billion, behind the $1.08 billion from the previous year.

The Zacks consensus estimate for this figure tallied up to $796.1 million. This positive aspect of Brown-Forman’s financial report came from the fact that Jack Daniel’s-branded products continued to rise in popularity, including double-digit sales growth for its Woodford Reserve and Old Forester.

Underlying operating income will rise by 5% to 7%, which is lower than its previous guidance of 6% to 8%. Earnings predictions are also lower as they were at $1.71 per share to $1.81 per share, but the company has adjusted this figure to a weaker $1.71 to $1.76 per share.